View source for BMW beats Q2 forecasts as new anti pollution rules dent rivals

FRANKFURT, Aug 2 (Reuters) - BMW reported a smaller-than-expected 6 percent decline in second quarter operating profit on Thursday while brushing off new anti-pollution rules and global trade tensions which caused rival Daimler [https://burmatourist.com/things-to-know-before-going-to-myanmar/ Things to know before going to Myanmar] warn on profits.<br><br>The German carmaker said higher spending to develop electric and autonomous cars and currency headwinds weighed on earnings before interest and taxes (EBIT), which fell to 2.74 billion euros ($3.19 billion) but topped the 2.69 billion expected by analysts.<br><br>"At times when others are struggling, they are rock solid, and they don't seem to have an issue with WLTP," Evercore ISI analyst Arndt Ellinghorst said, referring [https://burmatourist.com/things-to-know-before-going-to-myanmar/ Things to know before going to Myanmar] the new Worldwide Harmonized Light Duty Vehicles Test Procedure.<br><br>Evercore, which holds an 'in-line' rating on BMW, said the results were solid if unspectacular, while rivals Volkswagen and Mercedes had struck a more cautious tone.<br><br>[http://Edublogs.org/?s=BMW%27s%20automotive BMW's automotive] EBIT margin narrowed to 8.6 percent from 10.1 percent a year earlier while vehicle deliveries rose 0.7 percent.<br><br>Adjusted for comparability, BMW's automotive margin came in at 9.3 percent versus 9.2 percent for Volkswagen's Audi brand and 9.6 percent for Daimler's Mercedes-Benz, Evercore said.<br><br>WLTP<br><br>While Mercedes and VW said that problems certifying their vehicles to the WLTP standard would result in a more limited product offering, potentially damaging margins, BMW said it has largely completed converting its fleet.<br><br>BMW also said increased efficiency measures had helped offset a triple-digit million euro headwind from foreign exchange rates and raw materials.<br><br>BMW affirmed its 2018 targets to achieve slightly higher deliveries and revenues in the automotive segment and achieve a group profit before taxes at the previous year's level.<br><br>Because BMW earlier this year stopped exporting its X3 offroader from Spartanburg, South Carolina, [https://burmatourist.com/things-to-know-before-going-to-myanmar/ Things to know before going to Myanmar] China it was able to avoid a 40 percent import tariff on that vehicle while rivals such as Mercedes still export large SUVs from the United States.<br><br>Tariffs were introduced as part of a broader trade [http://www.dailymail.co.uk/home/search.html?sel=site&searchPhrase=dispute dispute] as the United States seeks to "rebalance" trade relationships with the European Union and China.<br><br>This may force carmakers to retool their production networks to curb inter-continental exports and to serve regional trading blocs instead. BMW has already announced an expansion of its product capacity in China and Europe this year.<br><br>Daimler, Fiat Chrysler and General Motors and supplier Valeo all blamed trade tensions for lowering their profit forecasts for the year.<br><br>($1 = 0.8586 euros) (Reporting by Edward Taylor; editing by Maria Sheahan and Jason Neely)<br><br>Advertisement